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Bank Of America Having Its Worst Day Since June 2016

Bank Of America Having Its Worst Day Since June 2016
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Bank Of America Corp (NYSE: BAC) shares are trading lower by $1.44 (5.5 percent) at $23.00 in Tuesday's session.

It's getting hit hard along with many others in the financial sector as questions are being raised about a President Trump aide's financial dealings with an ousted Ukrainian official. This may cast some doubt about the proposed changes to federal regulations that would be favorable to the banking sector.

The decline is its biggest loss since June 27, 2016, when it shed 6.3 percent, falling from $13.00 to $12.18. It should be noted that was part of a massive, Brexit-induced two-day decline, when it fell from $14.04 to $13.00

The proposed changes to federal banking regulations instigated a major rally in the sector since the election and investors are hurriedly taking chips off the table.

After a modestly higher open, Bank of America's stock found resistance just above Monday's closing price ($24.44) at $24.56 and reversed course. The slow and steady decline morphed into an all-out rout once it breached Monday's low of $24.42. It should be noted this was well ahead of the Washington Post story highlighting the possible transgressions of the Trump aide.

It hasn't breached the $23.00 level for the first time since February 10, when it bottomed at $22.96. If the decline continues, based on the daily charts, there may be limited support until the pair of lows at the $22.50 area from February 8 ($22.45) and February 9 ($22.64).

Posted-In: Technicals Intraday Update Movers Trading Ideas Best of Benzinga


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